UPDATE: Ann Posts Better-Than-Expected Q1 Profit

Ann ANN reported a better-than-expected first-quarter profit. Ann's quarterly earnings fell to $5.2 million, or $0.11 per share, versus $20.9 million, or $0.44 per share, in the year-ago quarter. Excluding certain items, the company earned $0.33 per share. Its sales rose to $590.6 million from $574.5 million. However, analysts were expecting earnings of $0.31 per share on sales of $599 million. At the Ann Taylor brand, net sales across all channels rose to $219.9 million from $219.3 million in the year-ago period. However, net sales across all channels at the LOFT brand surged to $370.6 million from $355.2 million. Ann's comparable sales dropped 1.8% in the period. Total brand comparable sales at Ann Taylor dropped 2.3%, while comparable sales at LOFT brand fell 1.6%. In the first quarter, it opened 13 new stores, including 3 Ann Taylor Factory stores, 7 LOFT stores and 3 LOFT Outlet stores. However, the company closed 4 Ann Taylor stores and 2 LOFT stores in the quarter. Kay Krill, President and Chief Executive Officer said, "Despite the headwinds of severe winter weather, soft traffic across the industry and the resulting higher than anticipated promotional environment, we delivered first quarter results that met our bottom-line expectations. Importantly, traffic and sales accelerated with the return of more seasonable weather, driving positive comparable sales for April and into May.” Ann projects Q2 sales of $670 million. For the full year, Ann expects sales of $2.6 billion. Ann shares gained 0.80% to $37.65 in pre-market trading.